Delivering Pathology Services 2008-2009: Session 2008-2009: The PFI Laboratory and Pharmacy Centre at Altnagelvin - Northern Ireland Assembly Papers No. 9/08-09 (Paperback)Northern Ireland: Northern Ireland Audit Office (author)
Paperback Published: 03/09/2008
- Not available
The development of the Laboratory and Pharmacy Services Centre (the Centre) is a key component of a major redevelopment in the largest acute hospital in Northern Ireland, outside Belfast. The Centre was funded through a public private partnership and the capital value of the contract equates to around GBP 15.2 million, with annual unitary payments of around GBP 1.6 million over its 25 year life. A further GBP 3.1 million was also invested by the public sector in providing a range of specialised equipment for the Centre. The development of an exemplar design for the Centre included site analyses and selection and an outline design for the project, developed in conjunction with users, and this increased certainty regarding the costing of the project, affordability and site related factors before going to the market.The Trust concluded that the PFI development option represented the best value for money on the basis that it virtually guaranteed future costs and delivered a high degree of certainty on the Altnagelvin development programme timetable. Despite the use made of the exemplar design, the costs for the project increased following design changes, negotiation with the preferred bidder and delays in the procurement. The increases in costs resulted in the estimated unitary charge increasing by 21 per cent. It took over five years for the preferred bidder to be appointed and financial close was not achieved until April 2005. A significant amount of additional cost was incurred by the Trust in relation to legal and financial consultancy fees. The GBP 280,000 paid, represented 1.9 per cent of capital value costs. The Altnagelvin Project Team has not evaluated the costs associated with the procurement process.
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